Collective bargaining under the Employment Relations Amendment

Act 2014

Rebalancing collective bargainingThese changes weaken workers’ bargaining power at each stage of the bargaining process:•At initiation (initiation timing, MECA opt out)•During negotiations (removal of duty to conclude)•Industrial action (notice requirements for all types of action, partial strike deduction, 60 day free hit period)•During the currency of agreement (removal of the 30 day rule)

A triumph for the workersIn one industry anyway. A bonanza for lawyers.

LESS MORE

So what?

Union wage differentials• Branchflower & Bryson (2004) USA: – In US, 16.5% union wage premium.

• Fournier & Koske (2012) 6 country comparison: – Six country comparison “the earnings of union

members higher and less dispersed than those of other workers.”

• Rosenberg (2014) New Zealand: – 1992-2012 collectivised wages rose 2.9% per

annum versus 2.1% per annum for all wages.

Calculated from LCI distribution of increases statistics and VUW Centre for Labour, Employment and Work CEA bargaining statistics

Collective bargaining and inequality

• Western & Rosenfeld (2011). USA:– Decline of organized labour accounts for fifth to a

third of the growth in income inequality.

• Jaumotte and Osorio Buitron (2015). IMF:– Decline of unionization accounts for half of rise in

top 10% income share.